Derivative strategy on Tata Motors by Motilal Oswal Securities

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Derivative strategy on Tata Motors by Chandan Taparia of Motilal Oswal Securities:

 

Option Strategy: Tata Motors (Call Butterfly Spread )

 

Buy 460 CE 1 lot

Sell 480 CE 2 lots

Buy 500 CE 1 lot

 

Rationale:

 

1.       Tata motors has witnessed accumulation in open interest in past few trading session

 

2.       Positive sector outlook  along with fresh built up could boost the momentum

 

3.       Highest call congestion is at 460 Ce, unwinding in same could propel momentum towards 480

 

4.       Thus low risk Call butterfly Spread is recommended

 

Target: Rs 20,000   

Stop Loss: Rs 6,000

 

Disclaimer: Motilal Oswal Securities ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.

 

Chandan Taparia is a Deivatives and Technical Analyst at Motilal Oswal Securities.


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